After testing a completely free “subscription” but with limited access to content on the platform, Netflix could also introduce a cheaper subscription that does not limit access, but involves another important compromise.
Netflix has tested a completely free subscription on the Kenyan market, offering access to some of the content available on the premium version of the service. The offer worked more like a demo package, with the free account providing access to only a few original Netflix productions, specially selected to tempt and persuade users to switch to a paid subscription.
This time, it seems that the solution is ready as a compromise option for those who have already set their sights on one of the Netflix subscriptions, but would not want to pay the full price. The offer is the acceptance of advertising breaks, introduced between the episodes of the favorite series. It is unknown at this time what he will do after leaving the post.
The possibility of introducing an advertising-subsidized tariff plan was discussed by Netflix CFO Spencer Neumann at a March 8 investor conference. However, while he admits that Netflix is not against advertising, such a solution is not currently part of the company’s plans for the near future: “It’s not as if we have religion against advertising, let’s be clear. But that’s not what’s in our plans right now… We have a very nice scalable subscription model, and again, it never says, but it’s not in our plan.
The change of attitude comes after the company’s CEO, Reed Hastings, strongly denied this possibility in early 2020. Meanwhile, the competition has already implemented this strategy, Disney + recently confirming the introduction of a subsidized subscription, compensated by displaying ads . HBO rivals Max and Hulu also offer similar subscription options.